Equity Alert: Bharti Airtel up 2% as co scraps MTN stake buy plan

[K.Karthik Raja]

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Equity Alert: Bharti Airtel up 2% as co scraps MTN stake buy plan
MUMBAI--1PM--Bharti Airtel was up 2.3% at 857.25 rupees as the
company
has scrapped talks with South Africa's MTN for a stake buy, dealers
said.
Even though the telecom major will now have to scout elsewhere to
expand its
geographical reach, it can use the funds to expand in the domestic
market, where
it has a strong presence, analysts said.
"Had they entered into the deal, the main concerns were funding
and
equity dilution. Bharti's domestic growth is strong and they are
expanding
aggressively," said Deepti Chauhan, analyst at Asit C. Mehta
Investment
Intermediates.
Dealers said the stock would regain 900 rupees in the next two-
three
weeks as it has fallen 10% since reports first surfaced in April of
possible
talks for an MTN stake.
Reliance Communications has now said it will have exclusive
negotiations
with MTN for 45 days. R-Comm was down 4% at 548 rupees.
Chauhan has a 12-month target of 1,086 rupees for Bharti Airtel
shares
and expects subscriber base to touch 81 mln by Mar 2009 from 61.9 mln
Mar-end.
So far today, 2.7 mln shares of Bharti Airtel have been traded on
BSE
and NSE together. The company's May futures contract was at par to the
spot,
with a marginal rise in open interest.